Telik Plunges After Drug Disappoints

Telcyta fails to meet the preset goals of two separate late-stage clinical studies.
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Updated from 8:32 a.m. EST

Shares of

Telik

(TELK)

were tanking after the company said its experimental cancer drug Telcyta failed to meet the preset goals of two separate late-stage clinical studies.

One trial was a 520-patient study designed to evaluate Telcyta in advanced non-small-cell lung cancer. The drug was compared with gefitinib, and it didn't achieve a statistically significant improvement in overall survival, the primary endpoint.

A trial of the drug in ovarian cancer patients also disappointed, the biopharmaceutical company said. A 440-patient study comparing Telcyta with liposomal doxorubicin or topotecan fell short of its main target of demonstrating a statistically significant improvement in overall survival.

Telik's stock was plunging $11.33, or 70%, to $4.93 early Tuesday.